Capstone Papers-Principles of Micro-Economics

Your supervisor has been asked many questions about how the economy works and why the idea of limited resources is such a major concern in today’s economy. As a result, she has asked you to prepare a report on the topics

Specifically, your supervisor has asked you to prepare the following:

A circular flow diagram that includes the government sector. For this part of your report, you should include a description of the roles that each participant plays in the economy and how the different sectors interact in the markets.

An illustration of the Production Possibilities model, including a summary of what the model is illustrating and the economic implications for the economy.